Your first import is where most of the surprises happen: an unexpected bill at the port, a missing document, or goods sitting in a warehouse while you work out who was meant to pay for what. Most of it comes down to three things: the Incoterm, the documents and the duty.
Incoterms: who pays, and when risk passes
Incoterms are standard trade terms that set who pays for transport and insurance, and where responsibility moves from seller to buyer. The ones you'll see most:
| Term | What the seller covers | What you cover |
|---|---|---|
| EXW (Ex Works) | Goods ready at the factory | Everything from pickup onward |
| FOB (Free on Board) | Delivery onto the ship at origin | Sea freight, insurance, import |
| CIF (Cost, Insurance and Freight) | Freight and insurance to the UAE port | Unloading, customs and delivery |
| DDP (Delivered Duty Paid) | Everything, including duties | Receiving the goods |
A low EXW price can end up more expensive than a higher CIF price once freight is added. Always compare like with like.
Sea or air?
- Sea freight: lower cost per unit, best for larger and heavier orders, slower
- Air freight: faster, best for urgent, light or high-value goods, costs more
The documents customs will ask for
- Commercial invoice
- Packing list
- Bill of lading (sea) or air waybill (air)
- Certificate of origin
- Any permits your product needs, for example for food, cosmetics or electronics
Missing or mismatched documents are the most common cause of delays.
Duty and VAT in the UAE
Customs duty is generally 5% of the goods' value including freight and insurance (CIF), and some products carry other rates. Import VAT of 5% then applies on that value plus the duty. Budget for both before you agree a selling price.
A simple first-import checklist
- Agree the Incoterm in writing
- Confirm whether your product needs a permit
- Check the supplier can provide every document
- Book freight and insurance, or confirm the supplier has
- Arrange customs clearance and final delivery
Next step: importing for the first time? Our procurement team can manage sourcing, inspection, freight and customs for you. Read our step-by-step guide on how to import from China to the UAE.
General information. Duty rates, permits and import rules depend on the product; we confirm them for every order.